Physician, dentist and pharmacist's real estate loan products are designed to meet the unique needs of these respected career paths; with special underwriting guidelines in regards to student loans (income to debt ratio). I will be specifically addressing the real estate loan needs of physicians in this blog post. However, there are mortgages targeted at dentists

and pharmacists too. Most first year residents all the way to those in their fellowships get declined for home loans and it is because they don't know what bank to apply to for their mortgage. After the subprime collapse, the mass majority of the 'Wal-Street' banks (large international/national banks) stopped selling these physician home loan products. The secret is the 'Main-Street' banks because they didn't stop selling physician loans. As a matter of fact, they love investing in their young and upcoming doctors. 'Main-Street" banks invest in their communities and doctors help build communities. Who are the 'Main-street' banks? They are the private and/or local bank(er)s in every town and city.

Residents and graduates are frequently declined loan approval from a 'Wal-Street' banks because of their income to debt ratios (student loans) and are unable to offer special loan products due to Federal guidelines. The 'Main-Street' bank is far more likely to look at the applicant's whole package and use common sense underwriting. The default rate on physician's first home mortgages is almost non-existent. Thus, private and local bankers look forward to building relationships with physicians, dentists and pharmacists.

What do physician home loan products look it? It really depends on the local and private bankers home loan design. Typically, anywhere from 80% to 100% LTV (loan to value) with varius stipulations. Thus, residents, graduating residents and those in their fellowships really should speak to at least 3 local banks before deciding which home mortgage to take. Sometimes, not always, physician loans will have slightly higher interest rates and closing cost, but not always. Thus, price shopping the loan and loan product is extremely important.

Unfortunately, physicians are not taught finance in medical school and determining the best mortgage to an individual's financial position is not always easy if one is not trained and experienced in finance. Why would a physician purchase a home with all that student debt? Because, they have to pay rent anyway and in many cities across America and Oklahoma it's still cheaper to buy than rent with these historically low interest rates. Plus, it's a strategic way to begin building one's financial portfolio without wasting anytime. Being a heart specialist doesn't mean one is also Donald Trump. Be savy, be smart, and ask for ADVICE.

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Suzanne Walker,Author*

This is my experience, opinion and perspective of the business. I've been in and around all levels of real estate my entire life; all over the world. After many years of telling the same real estate experiences over and over, I started a blog to answer the basic questions the average consumer has about real estate. Feel free to contact me anytime to discuss your real estate needs and goals. *Please see the Disclaimer.